Compute all values of $b$ for which the following system has a solution $(x,y)$ in real numbers:
\begin{align*}
\sqrt{xy} &= b^b, \\
\log_b (x^{\log_b y}) + \log_b (y^{\log_b x}) &= 4b^4.
\end{align*}
Let $m = \log_b x$ and $n = \log_b y.$  Then $x = b^m$ and $y = b^n.$  Substituting into the first equation, we get
\[\sqrt{b^m \cdot b^n} = b^b,\]so $b^{m + n} = b^{2b},$ which implies $m + n = 2b.$

The second equation becomes
\[\log_b (b^{mn}) + \log_b (b^{mn}) = 4b^4,\]so $2mn = 4b^4,$ or $mn = 2b^4.$

By the Trivial Inequality, $(m - n)^2 \ge 0,$ so $m^2 - 2mn + n^2 \ge 0,$ which implies
\[m^2 + 2mn + n^2 \ge 4mn.\]Then $(2b)^2 \ge 8b^4,$ or $4b^2 \ge 8b^4.$  Then $b^2 \le \frac{1}{2},$ so the set of possible values of $b$ is $\boxed{\left( 0, \frac{1}{\sqrt{2}} \right]}.$